Validus, TTC Group, Do Ventures enter joint venture to help SMEs in Vietnam

The joint venture aims to expand SMEs’ credit access. 

Validus Vietnam, TTC Group through DHA Corporation, and Do Ventures entered a joint venture that will help in the financial inclusion and expand access credit for small and medium enterprises (SMEs) in Vietnam through a digital marketplace lending platform.

Under the joint venture, Validus said multiple synergies will be created, which will TTC’s large ecosystem of SMEs in energy, real estate, cane sugar, and hospitality industries in Vietnam.

The joint venture will also help boost financing of businesses through partnerships, data and technology, it said.

Validus noted that SMEs is an important sector in Vietnam’s economy but their access to credit remains an issue, noting the SME financing gap of 12% of its gross domestic product. 

It also cited a World Bank Survey on the impact of the health crisis on the pandemic which found that the health crisis worsened the lack of access to finance as “liquidity remains a challenge under a continuous reduction in demand.”

“Using our proven proprietary data-driven approach and credit-scoring models, we will leverage synergies to expand credit access, alleviate liquidity challenges and bring value to SMEs in all parts of the supply chain,” Validus co-founder and Group CEO Nikhilesh Goel said.

Early-stage venture investment fund Do Ventures will support Validus Vietnam’s growth ambition with its expertise in emerging FinTech landscape. The joint venture can also benefit from potential synergies with portfolio companies under Do Ventures.